US Maine extends sales tax on digital and streaming

Jan 2026 5.5% sales tax on streaming platforms and extended to digital media

On 23 June 2025, Maine confirmed into law LD 210, a USD 320 million supplemental budget that significantly reforms the state’s digital services sales tax framework. It extends the 5.5% state tax to streaming platforms and broadens digital services already subject to tax.

Sales tax on streaming services

The legislation expands the state’s 5.5% sales tax to encompass digital services (platforms like Netflix, Hulu, and Spotify) effective 1 January 2026. Previously untaxed, these services will now be treated similarly to other taxable digital content such as cable TV and downloadable media.

This expansion redefines “digital audiovisual and audio services” to include subscription-based electronic transfers of content where the end user does not gain permanent ownership. The change aims to modernise Maine’s tax system to reflect current consumer behaviors and media consumption patterns.

Widening in-scope digital services

Additionally, LD 210 abolishes the Service Provider Tax (SPT), which since 2004 had applied to a narrow range of services such as satellite TV and radio. These will now fall under the broader sales tax umbrella at the same 5.5% rate, effectively standardizing the tax treatment of digital and traditional services. This shift also lowers the effective rate for some services previously taxed at higher SPT rates.

Recent U.S. states digital and streaming tax updates

• Maryland (1 July 2025) Instituted a 3% reduced sales tax on digital services (including software, hosting, digital publishing). Standard rate: 6%. Applies to SaaS and data processing. 
• Washington State & DC 1 Oct 2025 Washington imposes a 6.5% tax on digital services including streaming and SaaS, effective October 2025.  D.C. taxes digitally delivered products (including SaaS) under a 2018 emergency law. 

US Sales Tax rates and selling thresholds